Expand your reach with CFDs
Looking to diversify your portfolio? Trade CFDs with FOREX.com and explore stocks, indices, commodities and more, commission-free*.
- Do more with less: access assets at a lower cost than buying outright
- Go long or short: follow your hunch and speculate in either direction
- Learn the risks and benefits of leverage
- Earn up to $20,000 in cash back on deposits over $5,000**
The funds needed to open a CFD trade is the amount of capital required in your account. This varies across different stocks, for example, Netflix has the margin currently set at 30%.
Meaning that if you were to purchase 10 CFDs of Netflix at a share price of $600, you would need to have a minimum of $1,800 in your trading account. Compared to a traditional investment account where ten stocks would require a deposit to open the trade of $6,000.
For example, if the stock price for Netflix were to go up to $650, the ROI on the CFD trade would be 27.7%, while the ROI on the stock trade would be 8.3%.
However, it’s important to remember that a losing trade will be based on the full $6,000. If the Netflix share price were to fall to $550, the resulting loss on both the CFD trade and the stock trade would be the same, $500.
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CFDs mirror traditional trading making CFD trading easier to understand compared to other complex derivatives. -
The ability to short a stock which offers the opportunity to profit from falling markets. -
Not owning the underlying assets means you’re trading with leverage which allows you to open positions without paying for the total value freeing up your capital for more opportunities. Leverage exposes you to greater potential profits but also greater potential losses.
Not owning the underlying assets means you’re trading with leverage which allows you to open positions without paying for the total value freeing up your capital for more opportunities. Leverage exposes you to greater potential profits but also greater potential losses.
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FOREX.com offers $0 commission CFD trading on a wide range of asset classes. Only the spread cost will apply. -
The ability to Hedge CFDs allows you to offset risk from negative moves in your investment portfolio.
Although we are providing some of the benefits of trading CFDS, you should be aware that CFD trading is fast-moving, requires risk management plans and carries significant risk of loss.
Powerful tools for active traders
Trade on MT5 with FOREX.com
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*Based on active MetaTrader servers per US broker, March 2024.
FOREX.com is registered with the Canadian Investment Regulatory Organization (CIRO) and is a Member of the Canadian Investor Protection Fund (CIPF).
Frequently asked questions
Why trade stock CFDs?
Many savvy traders have uncovered the appealing advantages of trading CFDs, such as trading on leverage and the ability to short a stock, and have decided that this alternative method of trading better suits their aspirations.
How do I trade stock CFDs?
Whether you are going long or short, trading CFDs is as simple as trading any other product on our platform. Buy and sell stocks as you normally would based on your strategy via CFDs, but with leverage you have access to even more trading power. Remember, leverage exposes you to greater potential profits but also greater potential losses.
What are stock CFDs?
A Contract for Difference, or CFD, is a financial contract that pays the difference in price between the opening and closing trades. When you trade a CFD, you’re getting the same exposure as you would if you had bought the asset it tracks, but instead of investing in the market, you’re buying a contract for a fraction of the stock’s value.
*TERMS AND CONDITIONS: You can now trade commission free stock CFDs through December 31, 2024. We will waive any applicable commissions on stock CFD trades placed during this time period. After that, our reduced commissions as listed in the commission table here will be in effect going forward.
Equities are not available on the MetaTrader 4 platform.
View individual margin requirements for each stock CFD for USD and CAD based accounts.
Limit one promotional offer per customer.
†Refers to trade executions for GAIN Capital – FOREX.com Canada. Please note that multiple factors may impact execution speed, including but not limited; market conditions, platform type, network connectivity, trading strategies, and account type. Forex.com’s execution statistics represent GAIN Capital – FOREX.com Canada Ltd. orders executed on FOREX.com's platforms during market hours between August 31, 2024, 5:00 pm ET, and September 30, 2024, 5:00 pm ET and excludes trades/orders entered on the MetaTrader platform.
Market volatility, volume, and system availability may delay trade executions. Price can change quickly in fast market conditions, resulting in an execution price different from the price available at the time order is submitted. Price improvement is not guaranteed and will not occur in all situations.